After a strong performance yesterday, the dollar is catching its breath in today’s trading. This shift comes after US futures dipped slightly, following a surge the previous day. Traders are now processing the US-China trade ceasefire and are waiting to see if their optimism is warranted.
The USD/JPY has dropped by 0.4%, sitting at 147.85, though it remains close to significant gains of over 300 pips since yesterday.
Meanwhile, the EUR/USD has increased by 0.2% to 1.1115, while the GBP/USD is up 0.3% to 1.3215. Additionally, the USD/CHF slipped 0.7% to 0.8395 but is still relatively high compared to last Friday’s close of about 0.8300. On the other hand, the AUD/USD has bounced back, recovering much of yesterday’s losses to reach 0.6405, reflecting a 0.6% increase from the previous day.
In a different sector, gold prices have returned to $3,259 after a drop, stabilizing near a low of $3,201 per dollar.
Later today, the upcoming US CPI report may add more context to the market. However, it’s likely that any reactions to the figures will be muted, as the report probably won’t reveal significant effects from tariffs.
